You are trying to estimate the NPV of a three-year project, where the discount rate is expected
Question:
a. Estimate the NPV of this project. Would you take this project?
b. Estimate the IRR of this project. How would you use the IRR to decide whether to take this project?
Transcribed Image Text:
Cash Flow to Firm ($) Discount Rate (%) 9.5 10.5 11.5 12.5 Year 0 15,000 5,000 5,000 10,000
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